Tax Alert – 2013 Changes to Corporate Income Tax Act (EN)
4. Other Changes
(i) Changes concerning Tax on Gambling
With regard to the entry into force of a new Gambling Act on 01.07.2012 a number of changes were introduced in the CIT Act concerning the tax on gambling.
(ii) Expenses for Bribes
The expenses for bribing officials are expressly regulated as non-deductible expenses for tax purposes. The new provision is adopted as part of Bulgaria’s compliance with international agreements obligations and we assume that it will not have any particular practical significance.
(iii) Correction of Accounting Errors
Pursuant to current rules when a taxable person detects an accounting mistake concerning previous years during the current tax year, he corrects the annual CIT for the current year with the difference between the tax liability prior to and after the correction of the accounting error.
Following the amendments the taxable persons would need to notify in writing the tax authorities and the latter would be the ones who would take the necessary measures for changing the tax financial result and the tax liability of the person for the respective tax period.
This Tax Alert has been prepared by DELCHEV & PARTNERS for information purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Readers should not act upon this without seeking professional counsel.
